For this week's update I've attached both weekly and daily linear regression charts. The 30LR weekly chart shows the Qs bumping off the upper channel, with a likely man reversion to the 52 area. The 30LR daily chart shows the opposite picture, with the Qs bouncing off the lower channel, suggesting a mean reversion in the 55+ area.Just to confuse things a little more, the 11LR daily in moderately negative, while the 11LR weekly is fairly positive. Both the daily and weekly 3LRs are negative.
Historically, the next 2 weeks are regarded as almost sure things, but the Stock Traders Almanac has had an inordinate number of faulty predictions so far this year so I don't want to get too frisky, go all in and then regret it.
Historically, the next 2 weeks are regarded as almost sure things, but the Stock Traders Almanac has had an inordinate number of faulty predictions so far this year so I don't want to get too frisky, go all in and then regret it.
To satisfy my risk comfort level I'm looking at a Qs straddle to supplement my counter trend day trades. With 21 days to expiration I can sell the near 56 calls for .41 and the near 51 puts for .38. This play seems fairly low risk with the advantage that and I can always scale in or out and adjust the delta depending on each day's moves.
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